Bank Indonesia Scraps Bailout Plan for Dutch Unit

Indonesia's central bank scrapped aplanned $700 million bailout of its Dutch commercial-banking unit after failing to get written approval for the rescue from the
nation's parliament, forcing the company into bankruptcy.
The District Court of Amsterdam on Oct. 7 froze all loans and deposits of NV De Indonesische Overzeese Bank, or Indover, because of a considerable shortage of liquidity.
It had set today as a deadline for a rescue.
Indonesia's parliament, which is in recess, had agreed on Oct. 23 to a 546 million euro ($700 million) plan to bail out the bank. Consumer deposits totaling 11 million euros may be
guaranteed if Indover's activities no longer prove sustainable, the Dutch Central Bank said earlier this month.
PT Bank Negara Indonesia, the nation's fourth-largest lender, has $27 million in loans and deposits with Indover. PT Bank Rakyat Indonesia, Indonesia's second-largest by
value, also has some billions of rupiah in exposure to Indover.
The Amsterdam court has named two administrators for Indover.